Procurement Model of

ACC Ltd.

Presented by: Group 8

Atul Pandey
Bhushan Soni
Joy Mukharjee
Tushar Shah
Sameeksha Rastogi
Vishal Sharma
Introduction
Established in 1936, ACC is a pioneer & trend
setter in Cement & concrete technology.
ACC is India’s foremost cement manufacturer.
ACC has 14 modern cement plants across the
country & has a vendor base of more than 6000
suppliers.
ACC is among one of the first companies in
India to initiate commitment to environmental
protection as a corporate objective & including
it in the practices of the company.
Central Procurement
 The huge network of manufacturing units consume a wide
spectrum of raw materials like – Coal, Gypsum, Slag,
Packaging material (Bags), Refractories, Steel, Grinding
media, Electrodes, Cables, Bearings, Conveyer belts, Spares of
various Electrical, Mechanical & Instrumentation equipment,
Mining equipment & explosives.
 The procurement function comprises a Central Procurement
Team at the corporate office for the procurement of major
inputs for the operation of plants.
 A team of expert professionals at various levels manage the
procurement function.
 Procurement is organized such as to derive efficiency &
effectiveness for the company through economies of scale from
Central pooling & procurement.
Procurement Framework
CPO
ACC+ACL

Operations Capex

Coal & Raw

Bags MRO Services
fuel Material

Normal Projects
e- Procurement Technology
 e- Procurement or Electronic Procurement is the
process of procuring material electronically
extensively by using internet & various other
software.
 ACC uses the renowned ARIBA software.
 e- Procurement is being extensively used &
recommended because it is-
 Very Transparent.
 Quick.
 Hassel free.
 Efficient.
 Cost Effective.
e- Procurement Process-
Reverse Auction
1. Specifications & requirements are sent to the
perspective bidders/suppliers.
2. Standard terms & conditions are iterated to the
bidders/suppliers.
3. RFQ (Request For Quotation) is sent to
bidders/suppliers.
4. Submission of tentative quotations by
bidders/suppliers.
5. Creation of Comparative Statement by ACC Ltd.
6. Interaction with Vendors for clarifications.
e- Procurement Contd.
7. Creation of Training Event in the ARIBA
software facilitated by dummy values.
8. Intimation about Training as well as Main
Event is sent to the vendors.
9. Creation of main event in ARIBA.
10.Actual Live Auction proceeds.
11.Contracting Process with the auction winning
vendor takes place.
12.Following up the vendor for delivery.
Conclusion
 ACC Ltd. Model of e- procurement is highly
efficient & cost effective.
 It’s a transparent method with no undue
advantages to any particular vendor & buyer.
 Discourages unethical practices.
 Integration of CSR & OHS (Occupational
Health & Safety) in procurement process by
ACC Ltd. shows Social & Environmental
responsibility awareness in the company.
References
http://www.acclimited.com/newsite/csr_web_up
date_2008/sd_issues_contian.asp?issue_id=15
(Accessed on 5th Feb’10, 3.30 pm)
http://www.acclimited.com/newsite/centralproc
urement.asp
(Accessed on 5th Feb’10, 3.30 pm)